【Epoch Times, December 2, 2025】On December 1, two bonds of Vanke Corporation (Vanke) experienced a sharp decline of over 30% during trading, leading to a temporary trading halt. Concurrently, Vanke proposed a one-year extension of a 20 billion yuan bond.
The Shenzhen Stock Exchange website released two announcements on December 1 regarding the temporary trading halts of the “22 Vanke 02” and “21 Vanke 04” bonds.
According to the announcements, the trading price of “22 Vanke 02” dropped by over 20% from the previous closing price, triggering a temporary trading halt from 14:51:44 to 15:21:45 on the same day.
In another announcement, it was revealed that the trading price of “21 Vanke 04” plunged by over 30%, leading to a temporary trading halt from 09:37:52 to 15:27:00 on December 1.
By the end of the trading day, “21 Vanke 04” fell by 45%, “21 Vanke 06” by 39%, “22 Vanke 02” by 38%, “21 Vanke 02” by 20%, and “23 Vanke 01” by 17%.
Previously disclosed information indicates that the maturity dates for “22 Vanke 02” and “21 Vanke 04” bonds are March 4, 2027, and May 20, 2028, respectively. The total outstanding balance for both bonds, as per the 2024 annual report, amounts to 1.66 billion yuan.
According to reports from multiple Chinese media outlets on December 1, Vanke put forth a proposal to extend the maturity date for the “22 Vanke MTN004” bond, originally scheduled to mature on December 15, 2025. The mid-term note’s principal and interest payment timeline was extended by one year to December 15, 2026, with the 3% coupon rate remaining unchanged.
Vanke stated that the accrued interest prior to the extension would be paid on December 15, 2026, without compounding interest during the extension period. The bondholders would receive the additional interest principal payment simultaneously.
Other major developers typically opt for staggered payments for onshore bonds and less frequently resort to one-year extensions of both principal and interest. Sources familiar with the matter mentioned that initially, Vanke had discussed a payment plan of 10%, 10%, 80% over a few months. The current proposal, however, eliminates the initial payment and directly extends the maturity by one year.
Industry experts speculate that Vanke’s move aims to extend the bonds maturing within the year to avoid default and plan for an overall restructuring subsequently. Apart from the mid-term note seeking an extension, Vanke faces a 3.7 billion yuan mid-term note due at the end of December.
However, critics argue that bond extensions are essentially a form of default, resorted to when repayment at maturity is unfeasible. This sheds light on Vanke’s financial turmoil.
Vanke’s latest financial report for the third quarter of 2025, released on October 31, indicated a 27.3% year-on-year decline in operating income with a net loss attributable to shareholders of 16.07 billion yuan, a 98% increase in losses compared to the same period last year. Over the first three quarters of the year, operating income declined by 26.61% while net losses amounted to 28.02 billion yuan, surpassing the losses incurred in the first six months.
According to a research report from Huachuang Securities, as of November 27, 2025, Vanke had a total of 15 outstanding bonds, with 13 onshore bonds totaling 20.316 billion yuan, all being public bonds. The exercise maturity amounts for the years 2025 to 2027 are 5.7 billion yuan, 12.366 billion yuan, and 2.25 billion yuan, respectively, with bonds maturing before 2026 comprising 88.9% of the total, signifying substantial debt repayment pressure on Vanke.
To secure funds, Vanke once again pledged its shares in Vancloud Technology Services Co., Ltd. A release dated November 28 stated that Vanke, as the controlling shareholder, pledged 15.321 million shares, accounting for approximately 57.16% of Vancloud’s total issued shares (exclusive of treasury shares).
The announcement disclosed that Vanke would provide asset collateral to Shenzhen Metro Group Co. Ltd., acting as the beneficiary, as part of a loan agreement under a framework solution.
Meanwhile, in the secondary market, Vanke’s stock continued its downward trend, closing at 5.20 yuan per share, down by 3.35% as of 15:00 Beijing time, with a total market capitalization of 62.04 billion yuan.